Emirates’ World Investments (WI) is to pump A$433 million into Australian neobank Xinja over the next 24 months.
WI will invest A$160 million immediately, with the remaining A$273 million available to be drawn down in multiple tranches as Xinja Bank’s growth requires over the next two years.
"We think this is the largest single investment in an Australian neobank or start-up, and combined with exceptional customer acquisition and deposit growth, positions Xinja Bank as a frontrunner in the Australian neobank market,” says Xinja Bank founder and chief executive Eric Wilson.
Xinja Bank was granted a full banking licence in September 2019 and has attracted around $400 million in deposits for its recently launched Stash saving account.
Launched in May 2017 as a financial app and prepaid card, the neobank now has more than 45,000 accounts and plans to expand its offering to include personal loans and home loans later this year.
With the challenger banking sector under pressure from the global health crisis, Wilson closes on a somewhat downbeat note: "We know that this is a very difficult time for Australia and the world. And considering the health crisis we are all facing, this is not a time to celebrate."